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  2. Pricing strategies - Wikipedia

    en.wikipedia.org/wiki/Pricing_strategies

    Contribution margin-based pricing maximizes the profit derived from an individual product, based on the difference between the product's price and variable costs (the product's contribution margin per unit), and on one's assumptions regarding the relationship between the product's price and the number of units that can be sold at that price ...

  3. Pricing - Wikipedia

    en.wikipedia.org/wiki/Pricing

    A price tag is a highly visual and objective guide to value. Pricing is the process whereby a business sets and displays the price at which it will sell its products and services and may be part of the business's marketing plan.

  4. Value-based pricing - Wikipedia

    en.wikipedia.org/wiki/Value-based_pricing

    Pricing confidence is an essential organizational characteristic which allows teams to sell the product confidently and believe in the price-worthy value of the product (Liozu et al., 2011). [19] Therefore, it is important that companies build up pricing confidence in a team, showing the team a better insight, creating more value from the product.

  5. Economic value to the customer - Wikipedia

    en.wikipedia.org/wiki/Economic_value_to_the_customer

    The EVC process enables businesses to capture more value than a traditional cost-plus pricing strategy. Companies can leverage the method to estimate the value a customer derives from purchasing a product or service. The EVC is calculated by adding both tangible and intangible value elements a product or service provides to a customer. [2]

  6. Unit price - Wikipedia

    en.wikipedia.org/wiki/Unit_price

    A product's average price is the result of dividing the product's total sales revenue by the total units sold. When one product is sold in variants, such as bottle sizes, managers must define "comparable" units. Average prices can be calculated by weighting different unit selling prices by the percentage of unit sales (mix) for each product ...

  7. Price-based selling - Wikipedia

    en.wikipedia.org/wiki/Price-based_selling

    Most businesses sell their items, whether they are expensive automobiles, or inexpensive services based upon price. They do this not because it is the most profitable, but because they believe it is the easiest way to attract customers. [4] Consumers and Business-to-Business buyers alike may be easily enticed to buy based upon price.

  8. Contribution margin-based pricing - Wikipedia

    en.wikipedia.org/wiki/Contribution_margin-based...

    Contribution margin-based pricing is a pricing strategy which works without any mention of gross margin percentages or sales. (German:Deckungsbeitrag) It maximizes the profit derived from a company's assortment, based on the difference between a product's price and variable costs (the product's contribution margin per unit), and on one's assumptions regarding the relationship between the ...

  9. Invoice price - Wikipedia

    en.wikipedia.org/wiki/Invoice_price

    That price is usually called the manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product and is the price which the manufacturer recommends that the retailer sell the product for. The retail price is normally around 2.5 to 3 x the trade or wholesale price, depending on the markup of the retailer ...